Gold makes small move
Doug Ashbury
Northern News Services
Yellowknife (Mar 14/01) - The price of gold had a poor start at the beginning of the year, but is now picking up.
Todd Ferguson, an investment analyst with TD Evergreen, said the improvement is related to the economy and stock markets.
"People are concerned, to a degree, about stagflation. They are concerned there is potential for inflation. And they are concerned about the value of the stock market," he said.
These concerns have contributed to better gold prices and rising share prices for gold stocks, he said.
Gold has been on a steady decline since 1996, with brief bumps up in the fall of 1999 and last spring.
After slipping to $256.70 US in London a month ago, gold was fixed at $272.50 US Monday afternoon. Last Friday, the metal jumped $5.10.
Ferguson said gold producers are enjoying improved share prices over the past few months. Kinross, American Barrick and Place Dome are among gold companies which share prices have jumped in recent months.
"In light of current market conditions, gold companies are getting a lot of investors' capital," he said.
But it is "way to early to tell" if gold's move is the start of a major recovery, he added.
Miramar, which owns the Con and Giant mines in Yellowknife, has not been left out of the share price improvements.
Miramar stock trades as high a $1.38 Monday closing at $1.30. The stock has been climbing since December when it traded between 90 cents and one dollar. Miramar produced 121,874 ounces of gold last year at a cash cost of $264 US an ounce.
For 2001, the company is aiming to pour 125,000 ounces at $260 US an ounce. Production during 2002 and 2003 is anticipated to fall between 120,000 and 125,000 ounces each year with cash costs over the two years at $245 US.
